The 30% Solar Investment Tax Credit (ITC) was extended by the IRS. Rather than projects having to be completed by 2019, with the new guidance, they have only to begin construction and spend at least 5 percent of the total expected cost before January 1, 2020 to receive the 30 percent ITC, if they are completed and operational by January 1, 2024.
Not only will this spur more solar investment, but it will enable developers to use solar panels subject to the President’s tariffs, which expire in 2021. Projects that begin construction on January 1, 2020 through the end of the year will be eligible to receive a 26 percent ITC. The ITC will decline to 22 percent and 10 percent each of the following years.